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2001 DIGILAW 625 (AP)

XL Telecom Limited v. Collector of Customs, Hyderabad Collectorate

2001-06-25

S.ANANDA REDDY, S.R.NAYAK

body2001
S. R. NAYAK, J. ( 1 ) A short, but an important question of law of general importance that arises for decision in this writ petition is whether a custodian appointed under Section 45 of the Customs Act, 1962 (for short the Act ) is entitled to claim demurrage charges only in respect of the period during which the imported goods are in actual physical custody of such custodian or whether such custodian can also claim demurrage charges from the date of unloading of the imported goods in a custom area. ( 2 ) TO put the case of the petitioner in brief is: The petitioner company is a public limited company, which is engaged in the manufacture of Telecom Cables Jointing kits. One of the components of the Telecom cable Jointing Kits is a heat shrink sleeve. The petitioner has a manufacturing unit at ida, Mallapur, whereas, inter alia, the heat shrink profiles which are imported, are processed and converted into heat shrink sleeves. The petitioner has technical and financial collaboration with RXS schrumpftechnik, Garnituren Gmbh, germany. The petitioner company in the course of its business imports profiles for heat shrink sleeves from the said collaborator. Accordingly, the petitioner company in the course of business had imported several consignments under five Bills of Entry nos. 058 3389 8465; 058 3389 8480; 058 3433 2045; 058 3389 0496 and 058 3389 8056 during the months of April to June, 1994. According to the petitioner company, on importation, these goods were detained by the Indian Airlines, the 3rd respondent herein on the ground that they were too large and difficult to handle. It appears that the petitioner company did not clear the goods despite repeated reminders from the indian Airlines. Under those circumstances, the Cargo Manager of the Indian Airlines issued a letter dated 20-7-1994 to the petitioner company. It reads : indian AIRLINES our Reference Hyd: CGO: 16:473 dated 20-7-1994 to the Managing Director, XL Telecom Limited, 335 Chandralok, Secunderabad dear Sir, Sub :consignments from Germany in various AW we acknowledge the receipt of your letter xl: 291:94:1479 dated 15-7-1994 on the subject. In this connection, as desired by you we are furnishing below the arrival dates and flight Nos. against the shipment concerned.